TSX-V: ERG
LAVAL, QC, Oct. 28, 2016
/CNW Telbec/ - Ergoresearch Ltd ("Ergoresearch" or "the
Company") based in Laval and known
under the «Équilibre, orthèses et biomécanique» banner – announces
its results for the fiscal year ended June
30, 2016. All dollar amounts in the present release are in
Canadian currency. The year 2016 was dedicated to improving the
efficiency of the Company and laying out the foundations for future
growth. The net profit for the period ending June 30, 2016
amounted to $111,733 compared to a
net loss of $(7,023,218) last
year. The earnings before income taxes amounted to
$97,419 for Fiscal 2016 compared to
$(642,637) for Fiscal 2015. This
improvement in the result is related to efficiency gains that have
helped to improve our gross margin, reduce our supplying costs and
reduce our selling and administrative expenses.
Revenues reached $14,326,767 this
year, a decrease of 7.6% from last year. After the decline in sales
observed in the previous three quarters, we noticed a recovery of
the situation for the 4th quarter. The revenues this
year were negatively affected by the strategic and planned closure
of the "home care" division in January, the evolution of the
market, and changes in the organization of health care in
Quebec.
Concerning the balance sheet, the Company proceeded during the
year, in payments totaling $1,526,581
towards its long-term debt. Also according to what was
announced in November 2015, the
Company redeemed for cancellation 5% of its capital stock
(3,813,633 common shares) totaling an amount of $732,965.
The Company still has a cash equivalent of more than
$8 million that the Company plans to use over the next few
years.
Development and perspectives
Our current priorities and development plans include the
following objectives:
- Strengthened by our cash position, pursue the exploration of
potential acquisitions or partnership in Quebec and across Canada.
- Deploy the "Equilibre" brand in a multidisciplinary and
interdisciplinary concept through the opening or designation of the
super-clinics in Quebec.
- Continue to develop the marketing of our technology platform
and derivative orthotic related specialty products.
- Continuing our investments in Research and Development
(R&D)
Mr. Sylvain Boucher would like to
thank all of our employees for their dedication and their ongoing
desire to improve. Progress, the desire to excel and
commitment are values that we all share, which reveals a bright
future.
About Ergoresearch
Ergoresearch is a Canadian company that designs and
manufactures cutting edge technologies for the orthopedic industry.
The Corporation is a trend-setter in creating custom
orthotics and speciality orthotics for the orthopedics market and
holds a portfolio of patents in the orthopedics field and in human
bionics. The mission of our banner "Équilibre orthèses et
biomécanique" is to keep people active and moving. "ÉQUILIBRE",
driven by its proprietary technologies and the expertise of its
professionals, offers a range of products, treatments and services
in order to relieve pain, restore motor function and optimize
performance.
This document is not intended to encourage the purchase of
securities listed on the TSX Venture Exchange. TMX Group and its
affiliates do not endorse or recommend any of the securities
referenced here. Please seek professional advice to evaluate
specific securities.
Forward-looking statements
Certain statements in this Press Release contain forward-looking
statements and information that may entail certain risks related to
uncertainties. Such statements are not historical facts and are
based on current management's expectations. We ask the reader to
note that these statements are subject to a multitude of risks and
uncertainties that could affect the potential future results,
circumstances or events and may differ materially from those
contained in the forward-looking statements. Such risk factors
include, but are not limited to, those related to the Company's
ability to finance its activities, competition, ability to
negotiate and maintain partnerships, the market acceptance of the
Company's product, the strength of intellectual property, the
success of research and development programs, the trust invested in
sub-contractors or their core personnel as well as other risks and
uncertainties that are put forth every now and then by the Company
in the documents filed with various Canadian securities and
exchange commissions and made available at
www.sedar.com.
The reader should not give great importance to forward-looking
statements as (i) the results may differ from conclusions,
predictions or projections contained in such forward-looking
statements; and (ii) certain important factors or hypotheses taken
into account in reaching conclusions or the preparation of a
projection or prediction may prove to be incorrect in fact.
These statements are correct only on the date on which they were
written, and Management disclaims any obligation to revise these
statements after any event, circumstance or other situation, except
as required by law. All figures are in Canadian dollars, unless
otherwise specified.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Ergoresearch Ltd